National culture and entrepreneurial behavior

Transcription

1 National culture and entrepreneurial behavior An Epidemiological Approach to Comparative Entrepreneurship André van Hoorn & Robbert Rademakers

2 Main results culture determinants of entrepreneurial behavior In-group collectivism negative effect Assertiveness positive effect Uncertainty avoidance, Future orientation, Power distance, etc. no robust effect

3 Motivation Entrepreneurship clear sign of economic dynamism (e.g., Van Praag/Versloot SBE07). Cross-country differences in entrepreneurship are large but lack consistent explanation (e.g., Van Stel IEMJ05; Engelen/et al. JIE09; Bjørnskov/Foss AMP16; Nikolaev/Boudreaux 16; Su/et al ET&P16; Terjesen/et al. JoM16)

4 Culture and entrepreneurship Culture Collective programming of the mind Values Motivations to become entrepreneurship Beliefs Expectations about entrepreneurial success Entrepreneurship

5 Motivation Entrepreneurship clear sign of economic dynamism (e.g., Van Praag/Versloot SBE07). Cross-country differences in entrepreneurship are large but lack consistent explanation (e.g., Van Stel IEMJ05; Engelen/et al. JIE09; Bjørnskov/Foss AMP16; Nikolaev/Boudreaux 16; Su/et al ET&P16; Terjesen/et al. JoM16) Contradictory findings on role of culture - Importance of cultural dimensions (e.g., power distance vs. individualism) - Effect of cultural dimensions: Collectivism vs. individualism Epidemiological approach (Fernandez, 2010)

6 Challenge: disentangling influences Economic development GDP Culture In-group collectivism Entrepreneurship Self-employment Property rights Legal protection

7 What is the epidemiological approach? High GDP/capita Developed property rights i i i Moderate GDP/capita Less developed property rights c c c i i i c c c

8 What is the epidemiological approach? Moderate High GDP Less Developed property rights High GDP Developed property rights i c i c i c i c

9 Hypothesis 1 (+) H1: A more individualistic / less collectivistic homecountry culture increases the likelihood of engagement in entrepreneurship Personal needs and attitudes are important determinants of social behavior People emphasize rationality in behavior Individual performance trumps group performance

10 Hypothesis 2 (+) H2: A home-country culture that emphasizes assertiveness more increases the likelihood of engagement in entrepreneurship Value competition, success, and progress Try to have control over the environment Expect subordinates to take initiative

11 Hypothesis 3 (-) H3: A uncertainty avoidance home-country culture increases the likelihood of engagement in entrepreneurship Uncomfortable with uncertainty and ambiguity Avoiding unconventional behavior Intolerant for change

12 Data and method Data from European Social Survey (ESS), Migrant: Individual born in country other than country of residence +/- 11,000 individuals from 53 origin countries in 32 destination countries Regression analysis with cluster-corrected SEs - Engagement in entrepreneurship (0/1) is dependent

13 Main independent variables GLOBE practices (House et al. 2004) - In-group collectivism: the degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families - Assertiveness: the degree to which individuals are assertive, confrontational, and aggressive in their relationships with others - Uncertainty avoidance: the extent to which a society, organization, or group relies on social norms, rules, and procedures to alleviate the unpredictability of future event

14 Selected results Variable Coefficient P-value In-group collectivism (Home) <0.01*** Assertiveness (Home) 0.25 <0.01*** Uncertainty avoidance (Home) N = 4062 Host countries = 19 Home countries = 53 Control Host country fixed effects Dyadic (e.g., cultural Distance, colony, language) Time (ESS Round) Individual (e.g., education, age) Integration (e.g., nationality, years since arrival) Parents (education)

15 Discussion and conclusion Individualism and assertiveness main cultural factor for entrepreneurship - Other culture dimensions less important /insignificant Limitations and future research - Nontraditional measure of entrepreneurial behavior - Other means (e.g., values and beliefs) that culture affects entrepreneurship. - Other, non-transferable features of national cultures, e.g., social capital

16 Thank you for your attention